2024 Hiring Trends

2023 was a year marked by both challenges and resilience in the Irish job market. Despite uncertainties and signs of a cooling economy, employers demonstrated a sustained commitment to measured hiring. Jobseekers continued to fare well, with the ongoing skills shortage and continued high levels of employment bolstering their negotiating power. In 2024, employers will have to streamline recruiting processes further and enhance labour conditions to attract and retain talent.

Recruiters, however, find themselves in a challenging position, tasked with filling vacancies under tight budgets, leading to what is commonly termed as “HR Burnout”.

Looking ahead to the coming year, we anticipate a substantial role for AI in boosting recruitment efficiency and freeing up time for more meaningful tasks. As such, 2024 is poised to become the year of human connections. This evolution is not solely driven by companies; candidates are also actively contributing to this process.

In this article we will detail six of the trends that we believe will shape recruitment over the next twelve months.

Continued growth of tech and automation in recruitment

The scarcity of skilled professionals has intensified the demands on recruiters to fill job openings, leading to what’s now referred to as “HR Burnout”. With many businesses now operating within constrained budgets while grappling with the persistence of open positions, the strain on recruiters is anticipated to escalate further.

To alleviate this pressure, we expect increased automation of recruitment processes. IBM’s Global Adoption Index indicates that 45% of organisations are now using AI to improve recruiting and human resources. IrishJobs is part of The Stepstone Group, one of the world’s leading jobs platforms. Research by The Stepstone Group into tech and automation in recruitment in Germany and the UK revealed increasing automation of screening application documents, scheduling interviews, and initial communication with potential candidates. There can be little doubt that this new way of working is also being replicated in HR departments across Ireland.

Candidates to drive a transformative shift in recruitment processes

The evolution of the recruitment process is not solely influenced by the increased integration of automation on the recruiter’s side; candidates, too, are pushing forward the transformative shift.

By using tools like ChatGPT, candidates can now easily craft cover letters, enhance their initial correspondence with companies, and adeptly prepare for job interviews. For that reason, certain elements of the traditional recruitment process, such as the emphasis on cover letters are diminishing in importance. Additionally, components like take-home assignments may require adjustment, recognising that candidates can readily seek assistance form AI resources.

On that account, recruiters may find it more challenging to form comprehensive impressions of candidates, given the influence of AI in communication. As a result, it is more important that ever to speed up the time to a personal meeting.

This shift, again, underscores the irreplaceable value of human interaction in the assessment of candidates during the recruitment journey.

The evolution of skills-based hiring and lifelong learning

This year, some major US companies, including IBM and Accenture looked to reduce degree requirements, marking a significant departure from the conventional hiring paradigm.

This strategic move is driven by the desire to broaden their talent pools, placing greater emphasis on skills acquired through prior experience or alternative learning methods.

Employers have traditionally relied on markers such as education or years of experience in a role to indicate whether or not a candidate is capable of performing a job. Skills-based hiring screens for specific competencies, focusing on the skills that are applicable to the role. It helps employers identify the qualified candidate with the skills and potential to be successful in the role.

It’s an approach to hiring that will continue to evolve. Research from global consultancy firm, McKinsey has indicated that hiring for skills is five times more predictive than hiring for work experience. Meanwhile, it was much discussed at this year’s World Economic Forum in Davos, where it was argued that it could “democratise access to economic opportunities and pathways.”

Ultimately, skills-based hiring allows companies to address two challenges simultaneously: Perfectly qualified candidates are rare, and it is simply not cost-efficient to wait for them.

Investing in training and development allows companies to fill job vacancies more quickly while at the same time enhance employer attractiveness, as candidates are increasingly inclined towards opportunities that promise ongoing career development and employability.

The continued relevance of employee experience

Recently, “Employee Experience” has garnered significant attention in HR blogs portraying the comprehensive journey of an employee within an organisation – from recruitment and onboarding to professional development and eventual offboarding.

The pursuit of creating an environment where people actively choose to work is driven by the recognition that a healthy workplace has a substantial impact, contributing to overall well-being. While this trend projection has long held a prominent position, there are now indications that some companies may consider scaling back investments in employee experience due to budget constraints.

As a counterargument to this, there is a growing recognition that maintaining focus on employee experience is integral to achieving overall business success. For example, in a study by the Harvard Business Review, they indicate that exceptional customer experience is inseparable from an outstanding employee experience.

Meanwhile, research from Universum, the leading employer branding company and sister platform of IrishJobs acknowledged the significance of employee experience in relation to employer brand strategy. The annual Employer Branding survey recorded an increase in relation to employer brand strategy. The annual Employer Branding survey recorded an increase in the number of leading global employers acknowledging that their leadership development and people management practices are being influenced by their employer brand strategies.

A new focus on belonging

While many are familiar with the acronym DE&I, representing Diversity, Equity, and Inclusion, companies are now adding a fourth pillar: “Belonging” to DE&I initiatives.

Research by Deloitte revealed that workplace belonging can lead to an estimated 56% increase in job performance, a 50% reduction in turnover risk, and a 75% decrease in employee sick days. While in this year’s Most Attractive Employers Index for Professionals, Universum found the attribute “respect for its people”, a trait aligned closely with “Belonging”, moved up the employer preferences rankings for Irish workers.

“Belonging” is conceptualised as the result of a culture where every employee perceives the opportunity to flourish in their careers, feels acknowledged and appreciated for their distinctive contributions, and believes they can make a positive impact on the business. Some articulate it as an employee’s perception that their individuality is not only acknowledged but also esteemed by their organisation and colleagues.

HR can foster belonging by offering inclusive training and mentorship programs, investing in innovative technologies that bridge the gap between remote teams and by appreciating the diversity of experiences and perspectives their employees share with the business.

New approaches to an age-diverse workforce

Aligned with the trend of higher life expectancy, the engagement of older employees in the labour force will see a notable increase. In the face of demographic shifts, the workforce is poised to become more age-diverse, emphasising the need for collaboration among individuals in various life stages.

Working at age 55 and over is on the rise in Ireland with similar shifts in the workplace occurring in countries around the world. According to the report released earlier this year, older workers will make up over a quarter of the G7’s workforce by 2031.

It’s expected, in recognition of this, HR professionals will place an increased emphasis on fostering an age-friendly work environment. Micro-trends in this domain include a focus on cultivating lifelong learning opportunities, offering flexible retirement options, and providing comprehensive health, welfare, and retirement benefits.

Moreover, there is a growing acknowledgement of the importance of enhancing cohesion within multigenerational teams. Effective communication and working towards a common goal are key factors in harnessing the full potential of age diversity. Managers should be encouraged to articulate a shared objective for age-diverse teams and emphasise the benefit of multiple levels of expertise and experience.

While 2023 was marked as a year of efficiency driven by automation, the trajectory is now shifting towards harnessing the capabilities of AI and automation to prioritise a more human-centric approach. In the face of a shortage of skills, continual demographic shifts, and a progressively competitive labour market, emerging trends are notably shaped by the imperative to address staffing gaps.

Novel strategies, such as heightened emphasis on skills over degrees, the promotion of multigenerational workplaces, and a surge in international recruitment, signal a deliberate effort to tap into broader and more diverse talent pools.

In the discourse surrounding upcoming HR trends, there is a heightened focus on retaining and engaging talent. This involves a comprehensive consideration of the employee experience throughout the entire candidate life cycle. Additionally, there is a strong emphasis on cultivating a culture of belonging within the workplace.